Study: More Small Businesses in India to Buy PCs this Year

While computers have been adopted by many users for the advanced capabilities they can provide, several small businesses in India are just now beginning to discover the benefits computerization can bring to their business.

 

These benefits are especially important in the current economic climate as computers can help reduce costs and increase efficiency.

 

According to the latest study by AMI Partners, nearly 22 percent of SBs (small businesses) in India have plans in the next 12 months to invest in computers for the first time.

 

While the small and medium-sized business segment is vital to the economy in India, the study notes that only "a little more than a third of all SBs actually own and use a PC."

 

While a third of AMI survey respondents did say they never even considered buying a PC, more than 55 percent said they didn’t look to PCs because they didn’t think they had any relevance to their line of work.

 

With the expected increase, the PC market in India is projected to gain over half a million small businesses who in addition to purchasing new PCs will also make purchases in other IT categories like software, services, security and more.

 

"In the current economic downturn, businesses are looking at cutting costs, and as a result PC-owning SBs are extending the life-cycle of existing PCs," said Dipendra Mitra, Analyst at AMI-Partners.

 

"The non-PC owning businesses hold the key to growth in India. Even if a fraction of the 2.5 million non-PC owning businesses buy a PC, it will provide a considerable boost to the Indian IT industry."

 

 

AMI's study also found that non-PC SBs prefer to buy their computers from a local store as they have more options and buying power to choose the PC model or brand they ultimately go with.

 

Also, the study found that VARs will find strength in this marketplace as, "non-PC SBs need considerable hand-holding in the initial stages of PC adoption, in terms of installation and occasional troubleshooting," Mitra explained. VARs came in as the second preferred channel among survey respondents when it comes to purchasing PCs.

 

"About a quarter of these non-PC SBs say PCs will make their business look more professional. And one fifth of these non-PC SBs say PCs will increase the productivity of their employees, and the resultant business automation will boost efficiency. A considerable proportion of these businesses are likely to be first-time PC buyers," said Mitra.